Yes there is a floor. The manufacture cost for the refinery; transportation; EPA charges; Station cost; are just a few. Oil could be free and these cost will stay the same. With high price oil the oil price is a bigger percentage so it effects the price of the gas and diesel more easily.
But with that said the price of oil does not set the pump price. The price at the station across the street does set the pump price. Also margins at most big stations are pretty good. It is because they are the jobber and retailer. A mom and pop store could never keep up with the big boys because of this. The big stores can sell gasoline at the pump for less than the mom and pop stores pays for it and still make money. We use to (may still have) laws in Louisiana that forced the big boys to sell gasoline with at least a xx markup to try and protect small stores from this.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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